By Charles Dean Smith, Jr., CPA

The franchise business model is centuries old. And today, a new franchise opens every eight minutes.

Although the business model has been steadily gaining traction and popularity, not all franchises are established or managed properly and it’s certain that not all franchises will succeed.

This article from the Franchise Team at PBMares begins a multi-part series looking at the future of the franchise model and best practices of successful franchises.

We’ll explore prevalent issues on the mind of franchise owners, including:

• Financial planning
• Digital marketing best practices
• Financial analysis considerations
• The role emerging technology and AI will have on the industry

Best Practices of Today’s Successful Franchises

Ensuring that your franchise remains competitive and profitable involves more than meeting — or even exceeding — service expectations.
Lasting success requires a combination of strategic budgeting and forecasting, managing debt, investing in growth opportunities, analyzing data with a focus on key performance indicators, and more.

And perhaps, what’s most notable about successful franchises is their ability to anticipate and adapt in response to emerging trends. For example:

• Identifying how emerging tech, AI, and machine learning can drive productivity and optimize marketing. This trend can be especially pivotal in determining growth potential of specific market segments while considering an investment to expand.
• Embracing corporate and social responsibility. Today’s consumers are demanding commitments to sustainability in addition to transparency and accountability. And, depending on the response, social media and other online platforms present greater opportunities and/or potential pitfalls for franchise networks.
• Optimizing the customer experience through data analytics. For example, making product or brand recommendations in stores based on previous behaviors and preferences.
• Reimagining the role of the website. Gone are the days where a franchise website was merely a digital directory. Today, the website should function as a vehicle for growth by engaging customers, gathering real-time consumer insights, and optimizing the user experience.

Ensure Your Franchise Is Ready to Embrace the Future

You’ve already embarked on the first step toward future-proofing your franchise by educating yourself. But every franchise is different, so the next step is identifying what actions will be most doable and impactful for your business.

We recommend starting small. Examine business objectives to uncover areas where making small changes will realistically deliver quantifiable benefits.

Learn More

With many years of experience serving franchises in various industries, our dedicated franchise team offers comprehensive accounting, management, and business advisory services that can change the trajectory for your business. Contact us today.